Growth strategy
The economic forecasts describe a cyclical upturn, but the Government's ambitions extend beyond that. It is taking a range of actions in five interrelated areas to drive productivity growth. Many of these changes will have an impact in the medium term rather than straight away. But it is important to work now to create conditions for future growth.
First, the Government recognises that a skilled workforce is the foundation of a productive economy. The Government is focused on delivering a knowledge-rich curriculum, making better use of assessment, improving teacher training, raising attendance, strengthening learning support, and ensuring the education system is informed by strong data and evidence. Parents will also have greater choice over their children's education with new charter schools opening from 2025.
Second, the Government is working to improve complex regulatory systems such as resource management. The new Ministry for Regulation is undertaking targeted reviews of existing regulations and promoting effective stewardship of regulatory systems to ensure they are fit-for-purpose. Good regulation should improve competition, which boosts productivity, and the Government is aiming to develop “best in class” competition policy.
Third, innovation - both home-grown and from offshore - is critical to improving productivity. The Government is creating regulatory certainty to encourage investment in developing areas like gene technology. Work is also underway to ensure effective collaboration across public and private participants in the science system, ensuring a strong focus on research with commercial value.
Fourth, having strong and resilient international connections supports the flow of goods, services, capital and ideas between countries. The Government is working to expand access to new markets and remove trade barriers, and has recently concluded free trade agreements with the United Arab Emirates and Gulf Cooperation Council. Work is also underway to liberalise foreign direct investment settings to remove unnecessary barriers to the inward flow of capital.
Finally, investment in quality infrastructure supports productivity and provides essential services. The Government is developing innovative approaches to support greater investment in infrastructure, including value capture tools and partnering with the private sector. It is taking action to end New Zealand's housing crisis through its Going for Housing Growth policy, which involves a comprehensive programme to free up land for development inside and at the edge of cities, remove unnecessary planning barriers, and improve the way infrastructure is funded and financed.